Asst Accounts Manager
Query (Issue) Started By: – Banamali Das Dated:- 7-2-2017 Last Reply Date:- 11-2-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Rate of Entry Tax, Vat, Quartly
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Goods and Services Tax Council (GST Council)
GST
Dated:- 7-2-2017
The Government is not thinking to hike service tax if GST roll out is delayed. The Government is taking steps to expedite the GST and to take the concerns of the States on board.
Goods and Services Tax Council (GST Council) has been constituted on 15.09.2016 under Article 279A of the Constitution. The GST Council consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance and
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GST / EXCISE
Query (Issue) Started By: – SUNIL NAMA Dated:- 7-2-2017 Last Reply Date:- 10-2-2017 Central Excise
Got 4 Replies
Central Excise
DEAR SIR ,
WE ARE ON THE VERGE OF STARTING A NEW UNIT IN MARCH 2017 – NOW SINCE GST IS AROUND THE CORNER , PLEASE ADVICE
1 } SHOULD WE TAKE NEW CENTRAL EXCISE REGISTRATION FOR NEW UNIT OR WAIT TILL GST COMES IN TOO TAKE CENVAT CREDIT OF NEW MACHINES COMING IN MARCH ?
2) OR SHOULD WE TAKE NEW EXCISE REGISTRATION AND TAKE CREDIT AND WAIT FO
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Applicability of GST
Query (Issue) Started By: – monika gupta Dated:- 7-2-2017 Last Reply Date:- 10-2-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Whether GST will be applicable on educational trust?
Reply By KASTURI SETHI:
The Reply:
If trust is registered under Section 12 AA of the Income Tax Act, then exemption from GST is possible. Sometimes changes take place at the last moment.
Reply By YAGAY AND SUN:
The Reply:
Well, in our the tax position is not clear. The tax po
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Definitions of Accounts, Custom frontiers of India and non-taxable online recipient
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 7-2-2017
GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN
Definitions of Accounts, Custom frontiers of India and non-taxable online recipient
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised IGST law and comparing the same with old model GST law to know the changes made in revised law:-
Section 2(1) Accounts: the newly added definition reads as follows:
“Account means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account”
New definition of 'Account
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s follows:
means Government, a local authority, a governmental authority, an individual or any person not registered under section 23 19 of the CGST Act, 2017 receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory;
Explanation.-For the purposes of this clause, ―governmental authority‖ means an authority or a board or any other body:
(i) set up by an Act of Parliament or a State legislature; or
(ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243Wof the Constitution
This is a
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BUDGET 2017 –DOES IT FACILITATE GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 7-2-2017
Budget 2017-18 contains 3 major reforms. These are-
* Presentation of Budget advanced to 1st February to enable the Ministries to operationalise all activities from the commencement of the financial year.
* Merger of Railways Budget with General Budget to bring Railways to the centre stage of Government's Fiscal Policy, and
* Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries.
After it was almost clear after 9th meeting of GST Council that GST may now be implemented from July, 2017 only, at the earliest, all eyes were on the Union Budget 2017-18 which has since been presented in the Parliament of India on 1st February, 2017.
Only time will tell us whether it is the last Budget for Service Tax, Central Excise and Central Sales Tax and that whether fiscal 2017-18 is going to be
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ation federations.
* GST likely to bring more taxes to Centre and States because widening of tax base.
* Not many changes in current central excise and Service Tax regime as these will be replaced soon by GST
* No change in tax rates of excise duty as well as service tax.
* Abolishment of R & D cess is in allignment with GST
The present Budget is focused on TEC, i.e., transform, energize and clean India which contains measures for stimulating growth, digital economy and ease of doing business. This agenda of TEC India seeks to –
* Transform the quality of governance and quality of life of our people;
* Energies various sections of society, especially the youth and the vulnerable, and enable them to unleash their true potential; and
* Clean the country from the evils of corruption, black money and non-transparent political funding.
It also seeks to facilitate RAPID, i.e., Revenue, Accountability, Probity, Information and Digitalization. There are number of clues on goods
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ence. Since the enactment of the Constitution (One Hundred and First Amendment) Act, 2016, the preparatory work for this path-breaking reform has been a top priority for the Government. In this context, several teams of officers both from the States and Central Board of Excise and Customs have been working tirelessly to give finishing touch to the Model GST law and rules and other details. Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council. Since then, the GST Council held 9 meetings to discuss various issues relating to GST, including broad contours of the GST rate structure, threshold exemption and parameters for composition scheme, details for compensation to States due to implementation of GST, examination of draft model GST law, draft IGST law and the Compensation Law and administrative mechanism for GST. It is my privilege to inform this august house that the GST Council has finalis
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Hope to take GST legislations to Parliament this session: FM
GST
Dated:- 4-2-2017
New Delhi, Feb 3 (PTI) Keen to rollout the Goods and Services Tax by July, the government plans to take the supporting legislations to Parliament next month, Finance Minister Arun Jaitley said today.
While the all-powerful GST Council has already decided on a four-slab tax structure for the indirect tax regime, the levy for different goods and services will be decided by May or June.
Jaitley said he hopes to get Central GST (CGST) and Integrated GST (IGST) draft legislations approved at the next GST Council meeting on February 18 and bring them in the second half of ongoing Budget Session. It will reconvene on March 9 after a month long break a
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o have to pass SGST or State Goods and Service Tax. Also, a GST Compensation Act needs to be approved by Parliament to provide for compensation to states that lose revenue from implementation of GST in first five years.
"One parallel exercise is fitment of various commodities in to the rate structure for that the officer have to meet," Jaitley said.
The GST Council has fixed the four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 percent.
Revenue Secretary Hasmukh Adhia said a good or service will be put in a slab which is closest to the current rate at taxes.
"As far as fitment of rate is concerned there are four slabs. The present incidence of VAT plus excise duty, or VAT plus service tax it whatever is t
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Definition of First and second stage dealer
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 4-2-2017
GST DAILY DOSE OF UPDATION
Definition of First Stage Dealer
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
Section 2(46): First Stage Dealer: The new definition reads as follows:
First Stage Dealer means a dealer, who purchases the goods directly from,-
(i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent
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stered importer. Prior to this amendment, no transitional provision was there in Model GST law for the dealers. As the cenvat credit of excise duty was not allowed to dealers, it would have also resulted in heavy burdening in terms of cost for them. The trade associations were demanding the transitional provision for the same. This is welcome step on behalf of the Government that they have adhered to the same.
But it is interesting to note that no mechanism has been prescribed to avail the cenvat for the dealers. They are maintaining RG 23 D register and there is clear cut balance of credit can be worked out for them. Even they need not to follow the FIFO method. They can clearly tell which inputs are lying with them and invoice relating t
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Tax Relief under GST
GST
Dated:- 3-2-2017
All decisions of GST Council so far have been taken unanimously. Various states may have different points of view on an issue but the final decisions have been unanimous.
The issue regarding treatment of the existing tax incentive schemes of the Central and State Governments was discussed during the 2nd Meeting of the GST Council held on 30th September, 2016 and the Council agreed that all entities exempted from payment of indirect tax und
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AUDIT UNDER MODEL ‘GST’ LAW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 3-2-2017
A taxable person is required to furnish proper explanation to the officer in case any discrepancy is detected in the return filed under model GST law ('law' for short). Such information is required to be furnished within 30 days of being informed. Such date may be extended further by the officer if sufficient cause is shown. If a taxable person does not furnish the required information within the time specified or does not take corrective action within a reasonable period after accepting the discrepancies, the Proper Officer may take recourse to any of the following provisions-
* To proceed to conduct audit under Section 63 of the law;
* To direct the conduct of a special audit under Section 64 which is to be conducted by a Chartered Accountant or a Cost Accountant nominated for this purpose by the Commissioner; or
* To undertake procedures of inspection,
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audit. This section provides that the audit is required to be completed within three months from the date of commencement of audit. If the audit cannot be completed within three months from the date of 'commencement of audit' the Commissioner may, if he is satisfied, extend the period of audit for a further period not exceeding six months. The reasons for such extensions shall be reduced in writing. The term 'commencement of audit' is important because audit has to be completed within a given time frame in reference to the date of commencement. Commencement of audit means the later of the following-
* the date on which the records/accounts called for by the audit authorities are made available to them, or
* the actual institution of audit at the place of business of the taxpayer.
Section 63(5) provides that during the course of audit, the authorized officer may require the taxable person to afford him the necessary facility to verify the books of account or other documents as he
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ther proceedings before hi, any officer not below the rank of Deputy/Assistant Commissioner, having regard to the nature and complexity of the case and the interest of the revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such taxable person by notice in writing to get his records including books of account examined and audited. The special audit shall be carried out by a Chartered Accountant or the Cost Accountant nominated by the Commissioner.
Section 64 (2) provides that the Chartered Accountant or Cost Accountant shall within the period of 90 days, submit a report of such audit duly signed and certified by him to the Deputy/Assistant Commissioner mentioning therein such other particulars as may be specified. The proper officer may extend the time limit of special audit by another ninety days on the application of the Chartered Accountant or Cos
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GST Council has finalised its recommendations on almost all the issues based on consensus, says Finance Minister in his Budget Speech
Budget
Dated:- 1-2-2017
GST Council has finalised its recommendations on almost all the issues based on consensus, says Finance Minister in his Budget Speech
Extensive reach-out efforts to trade & industry for GST to start from 1st April, 2017
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that the GST Council has finalised its recommendations on almost all the issues based on consensus after spirited debate and discussions. The Finance Minister said that the Government on its part has promptly given
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stem. He said that since the enactment of the Constitution (One Hundred and First Amendment) Act, 2016, there has been substantial progress on preparatory work towards ushering in GST which is by far the biggest tax reform since Independence. Several teams of officers both from the States and Central Board of Excise and Customs (CBEC)have been working to give finishing touch to the Model GST law, rules and other details, he added.
Shri Jaitley said that the Government, through the Central Board of Excise & Customs (CBEC) shall continue to strive to achieve the goal of implementation of GST as per schedule without compromising the spirit of co-operative federalism. He added that the implementation of GST is likely to bring more taxes both t
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EXEMPTION FROM GST
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 1-2-2017
In GST there is no separate meaning for goods or service. Supply is common for both of the goods and service. Section 3 defines the term 'supply'. The provisions of Finance Act, 1994 and Central Excise Act, 1944 and State Value Added Tax laws give powers to the respective Government to exempt any goods/service. The exemption may be full or partial; permanent or for a particular period. The Government may review the exemption given to such goods/services and do necessary action on exemption according to the situation requires.
Many a notification is being issued for exemption in respect of service tax as well as central excise duty by the CBE&C and also by the State Governments for their respective VAT. All exemptions under these Acts will come to an end on the introduction of GST regime.
The Model GST law and IGST law also provides for exemption from GST.
Section 2(44) of
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on providing such goods and/or services shall not pay the tax on such goods and/or services.
Section 11(2) provides that if the Central or a State Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the Council, by special order in each case, exempt from payment of tax, under circumstances of an exceptional nature to be stated in such order, any goods and/or services on which tax is leviable.
Section 11(3) provides that the Central or a State Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or application of any notification issued under Section 11(1) or order issued under Section 11(2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under Section 11(1) or order under Section 11(2), and every such explanation shall have effect as if it had always been the part of the first s
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the Act gives powers to the Central Government to grant exempt generally either absolutely or subject to such conditions as may be specified in the notification, inter-state supply of goods and/or services of any specified description from the whole or any part of the tax leviable thereon. The Central Government is to satisfy that it is necessary in the public interest so to do and on the recommendations of the GST council. Where an exemption in respect of any goods and/or services from the whole of the tax leviable thereon has been granted absolutely, the taxable person providing such goods and/or services shall not pay the tax on such goods and/or services.
Section 6(3) provides that where the Central Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the GST Council, by special order in each case, exempt from payment of tax, under circumstances of an exceptional nature to be stated in such order, any goods and/or services
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Definition of Consideration
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 1-2-2017
GST DAILY DOSE OF UPDATION
Definition of Consideration
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
Section 2(28): Consideration: the new definition reads as follows:
Consideration in relation to the supply of goods or services includes
(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any
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entral or State Government. This amendment gains utmost importance in the light of decision of Supreme Court in the case of Maruti Suzuki Ltd. which states that subsidy provided by the government in form of adjusted payment of VAT will be treated as additional consideration and will be added in the assessable value of the goods for the purpose of excise duty. Relying on this decision, notices were sent to assessees claiming this subsidy. Now the new definition has specifically excluded the subsidies from its purview putting rest to all the possible litigations that may arise on this issue.
Another point of probable litigation is that the definition states that consideration can be voluntary or non voluntary. Although the main phrase uses t
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Sale of immovable property treated as 'Supply'
Query (Issue) Started By: – NANDAKUMAR KONKAR Dated:- 31-1-2017 Last Reply Date:- 4-2-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Under MGST Law, Clause 5 (b) of Schedule II [transactions to be treated as 'Supply'] states that :
"construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier."
broadly construed to mean that transfer of property under construction (where entire
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n that when entire consideration is received before 1st occupation, it would not be a supply. So regardless of whether entire consideration is paid by buyer after CC or before 1st occupation, it would not be a supply.
Alternately, if first occupation exception is not linked with receipt of entire consideration, it could mean in cases of occupation before issuance of CC, transaction would not be supply.
Kindly clarify
CA Nandakumar Konkar
Reply By KASTURI SETHI:
The Reply:
Dear Sir,
Note the words, "In GST there is no separate meaning for goods and services." written by Sh.M.Govindarajan, Sir in his article dated 1.2.17.
Reply By KASTURI SETHI:
The Reply:
Pl. read "Goods or Services" instead of "goods and se
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Service Tax —Monitoring of Non-Filers/Stop-Filers & Widening of Taxpayer base- Reg
GST
Dated:- 31-1-2017
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS
NORTH BLOCK, NEW DELHI-110001
F.No. IV/26/24/2016-Systems (S)
Tel. : +91-11-23092628
Fax : +91-11-23092346
27.01.2017
Dear Colleague,
Sub: Service Tax -Monitoring of Non-Filers/Stop-Filers & Widening of Taxpayer base- Reg.
As you are aware, the Directorate General of Systems has been regularly taking several initiatives to enable the field formations to closely monitor the compliance levels in the Service Tax. Both in ACES as well as in EDW, there are several methods for identifying the Non-filers and Stop-filers of ST-3 Returns. The Directorate General of Systems has taken steps to send bulk mails to Non-filers and Stop-filers of ST 3 Returns, so that they actively participate in the filing. As on date, as many as 6,80,000 emails have been sent by DG Systems t
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ommissioners/ Pr. Commissioners/ Commissioners to take steps to immediately utilize requisite the data furnished by DG Systems in respect of their formations for taking appropriate action against NON-FILERS/STOP-FILERS/LATE-FILERS.
With best wishes,
Yours sincerely,
(S. RAMESH)
MEMBER (CX, ST & IT)
Annexure A
Annexure B
Annexure C
=============
Document 1
Worksheet of non-filers of ST-3 Returns – the zone wise break-up (list) forwarded to respective zones
Zone Name ITEM-1 (Non Filers) ITEM-2 ITEM-3 ITEM-4 ITEM-5
Bulk mails sent to all ACTIVE assessees, who were registered during Apr-Sep 2016-17 but not filed the Apr-Sep 2016-2017 return Bulk mails sent to all ACTIVE assessees, who have filed both Apr-Sep and Oct-Mar returns for the year 2015-2016 but not filed the Apr-Sep 2016-2017 return Bulk mails sent to all ACTIVE assessees, who have filed any one of the returns – Apr-Sep or Oct-Mar returns for the year 2015-2016 but not filed the Apr-Sep 2016-2017 return Bulk Mail
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3 757 1602 1912
Kolkata 745 1775 1175 2625 343 594 717
LTU Zone 7 38 24 84 3 32 15
Lucknow 3832 4529 3852 7182 1212 1979 2443
Meerut 5066 6049 5465 9130 1053 2447 2745
Mysore 1091 2185 1650 3078 576 1225 1368
Nagpur 1326 3731 2677 4920 831 2438 2490
Pune 2934 7070 5161 10073 1844 4695 5005
Ranchi 2798 3926 3132 6953 1161 1730 2159
Service Tax Chennai 4763 6218 4366 11098 1517 3773 4222
Service Tax Delhi 13659 18126 14407 27819 2394 6007 6586
Service Tax Kolkatta 1739 4693 2952 7099 759 1825 2089
Service Tax Mumbai 9481 18153 11880 24644 4164 10115 10930
Shillong 861 1573 1001 2028 361 820 902
Vadodara 1509 5040 2792 5914 811 2046 2287
Visakhapatnam 1619 2471 1930 3793 772 1628 1817
TOTAL 80607 132905 96149 197149 31185 67701 74856
Document 2Sheet: ANNEX-B
ANNEXURE B
Monitoring of Progress of Persuasive Action in respect of Non-Filers and Stop-Filers of ST-3 return
Name of the Zone:
Name of the Commissionerate:
Head Note: Opening Balance
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put up the same to the Commissioners for taking necessary action. Now, the said report along with the Error
code wise Report is made available in the front end of Enterprise Data Warehouse application for the licensed users.
2. The following categories of assesses may be considered as ‘Non-Filers', ‘Filers', ‘Stop-Filers' or ‘Late filers’.
Non Filers: Those assesses who have not filed returns in ACES even once after the Registration may be considered as non-filers. Actual date of
registration of assesses which is shown as “NULL” or “incorrect date” in the list may be verified for ascertaining their status (active/inactive)
and requirement for filing ST-3 returns.
Filers and Stop Filers: Those assesses who had field at least one servicee tax return in the selected financial year include filers and stop -filers.
Late Filers: Those assesses who had filed their returns beyond the due date are termed as late filers.
3. ST Return
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on-filers/stop filers/late filers can be generated for a Commissionerate for a financial year at a time.
(b) Service Tax Error code wise Report from EDW:
1. This report is available under Pre-Defined reports(static reports) under Service Tax.
2. The navigational path is >> Central Excise and Service Tax Report>>Service Tax >>ST Error code wise Report.
3. Parameters such as Financial Year, Return period, SRC, Zone/Commissionerate/Division/Range are available for selection of Zone and
Financial year are mandatory.
Service Tax
Error Code 12 Report
After EDW Login the following screen will be displayed:
The EDW Procedure to generate the following reports:
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use – Mozilla Firefox
File Edit View History Bookmarks Tools Help
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Getting Started Lates
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ce Profiling
Public Folders – EDW SmartView – CBEC's Data Warehouse – Mozilla Firefox
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Public Folders > Central Excise and Service Tax Reports > Service Tax
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urn Period
Oct-Mar
Select all Deselect all
02 Short paid Education Cess
03-Short paid SHE (Sec and Higher Education) Cess
06 Non-ISD
07 ISD
04 Non-ISD Mismatch in carried forward balance of Service Tax Cenvat Credit
05 Non-ISD Mismatch in carried forward balance of Education Cess Cenvat Credit
Mismatch in carried forward balance of SHE Cess Cenvat Credit
Mismatch in carried forward balance of Service Tax Cenvat Credit
08 ISD Mismatch in carried forward balance of Education Cess Cenvat Credit
09 ISD Mismatch in carried forward balance of SHE Cess Cenvat Credit
10- Exemption notification wrongly availed
11 Abatement notification wrongly availed
12- Incorrect challan used for payment
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Select the options Financial Year, Retrun Period, SRC Error Code 12 & Zone then, press Show option the following report shows SR
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SERVICE TAX DIVISION-I
RANGE-I
SI0101 AAACA0978QSD001
Aanchal Apparels Private Ltd
3
III MUMBAI
2
20142015 MUMBAI ST
4
SERVICE TAX COMMISSIONERATE SERVICE TAX DIVISION-I
III MUMBAI
RANGE-I
SI0101
AAACA3640HST001
AARVI ENCON PVT LTD
20141001 05102470404201550872
20141001 02003880601201501863
3
20142015 MUMBAI ST
SERVICE TAX COMMISSIONERATE-
SERVICE TAX DIVISION-I
RANGE-I
SI0101 AAACA3640HST001
AARVI ENCON PVT LTD
20141001 02003881704201500017
5
III MUMBAI
4
20142015 MUMBAI ST
6
SERVICE TAX COMMISSIONERATE SERVICE TAX DIVISION-I
III MUMBAI
RANGE-I
SI0101
AAACA8898DSD002
ABM ARCHITECTS PRIVATE LTD
20141001 63602190502201533717
5
20142015 MUMBAI ST
SERVICE TAX COMMISSIONERATE-
SERVICE TAX DIVISION-I
RANGE-I
SI0101
AAACA8898DSD002
ABM ARCHITECTS PRIVATE LTD
20141001 63602190502201533878
7
III MUMBAI
6
20142015 MUMBAI ST
SERVICE TAX COMMISSIONERATE- SERVICE TAX DIVISION-I
RANGE-I
SI0101 AAACA8898DSD002 ABM ARCHITECTS PRIVATE LTD
20141001
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Economic Survey: The Constitutional Amendment on GST will create a common Indian market, improve tax compliance and governance and boost investment and growth
Budget
Dated:- 31-1-2017
Economic Survey: The Constitutional Amendment on GST will create a common Indian market, improve tax compliance and governance and boost investment and growth.
The Economic Survey states that the world GDP is expected to grow because of a fiscal stimulus in the United States but points out that there are considerable risks.
Economic Survey: Addressing the Twin Balance Sheet problem of over-indebted corporates and bad-loan-encumbered Public Sector Banks will be vital.
The Economic Survey 2016-17 presented in Parliament today states that against the backdrop of robust macro-economic stability, the year was marked by two major domestic policy developments-the passage of the Constitutional Amendment, paving the way for implementing the transformational Goods and Services Tax (GST), and the ac
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se because of a fiscal stimulus in the United States but there are considerable risks. These include higher oil prices, and eruption of trade tensions from sharp currency movements, especially involving the Chinese yuan, and from geo-political factors. Another serious medium-term risk is an upsurge in protectionism that could affect India's exports.
The Survey states that the year also saw a number of legislative accomplishments in the country. In addition to the GST, the Government:
* Overhauled the bankruptcy laws so that the “exit” problem that pervades the Indian economywith deleterious consequences highlighted in last year's Surveycan be addressed effectively and expeditiously;
* Codified the institutional arrangements on monetary policy with the Reserve Bank of India (RBI), to consolidate the gains from macroeconomic stability by ensuring that inflation control will be less susceptible to the whims of individuals and the caprice of governments; and
* Solidified the legal b
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stablish private investment and exports as the major drivers of growth and reduce reliance on Government and private consumption. Addressing the Twin Balance Sheet problem-over-indebted corporates and bad-loan-encumbered public sector banks-a legacy of the years surrounding the Global Financial Crisis will be vital.
Looking further ahead, societal shifts at the level of ideas and narratives will be needed to overcome three long-standing meta-challenges: inefficient redistribution, ambivalence about the private sector and property rights, and improving but still-challenged state capacity. Doing so would lift an economy that is oozing with potential. In the aftermath of demonetisation, and at a time of gathering gloom about globalization, articulating and embracing those ideational shifts will be critical to ensuring that India's sweet spot is enduring not evanescent.
The report says that India seems to be a demographic sweet spot with its working age population projected to grow by a
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Definition of Common Working Days
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 30-1-2017
DAILY DOSE OF UPDATE BY CA PRADEEP JAIN
Definition of Common Working Days
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(25) Common working days: The new definition reads as follows:
Common working days in respect of a State shall mean such days in succession which are not declared as a gazetted holiday by the Central Government or the concerned State Government;
This is a new definition added in the Revised GST Act. There is no reference of common working days at any place other than this definition in the Act. However, as per opinion of the author the "working days" wherever used in Act should be taken as common working days. In the In the absence of the definition, there could have been a s
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nder a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis;
2(31) Continuous supply of services: the definition reads as follows:
means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such service as the Central or a State Government may, whether or not subject to any condition, by notification, specify;
There is no concept of continuous supply of goods under present Central excise or VAT/CST laws. Under service tax, continuous supply of service is defined to mean any service which is provided or agreed to be provided continuously or on recurrent basis, under a contract, for a period exceeding three months with the obligation for payment periodically or from time to time. Govt notified telecom services, works contr
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iver, whether or not any invoice has been issued or any payment has been received by the supplier of service;
(ii) Where the due date of payment is not ascertainable from the contract: When the supplier of service receives the payment, or issues an invoice, whichever is earlier;
(iii) Where the payment is linked to the completion of an event: The time of completion of that event;
The event of supply is central to levy of GST. When supply of goods or services is not done, mere raising of invoice/payment received is being treated as time of supply. It is not made clear what happens in such a scenario whereby payment is received/invoice raised but supply does not take place.
The multiple events, namely raising invoice/making payment in case of supply of goods/services or say completion of event-in case of supply of service triggering the tax levy, confirms that the Govt wants to ensure tax is collected at the earliest point of time. This would create difficulties for long term con
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Definition of Business Vertical
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 30-1-2017
DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Business Vertical
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(18): Business Vertical: The new definition reads as follows:
“business vertical” means a distinguishable component of an enterprise that is engaged in supplying an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business verticals;
Expl
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inition. But the definition itself seems to be a complicated definition to understand. A preliminary interpretation led to a belief that as like the current system of registration in excise and service tax where separate registration is taken for separate premise, the new regime will also provide a similar facility. It is expressly stated in the new law that the business verticals situated in the same State will have an option to avail single or separate registration for all such business verticals. A very important thing to note here is that the term used here is business vertical and not business premise. Thus the definition becomes critical altogether when it comes to registration.
A business segment is a part of the company that can be
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it of separate registration or not. There is no specific provision in this regard and it is not clear that whether all the business verticals located in the same premises can be registered separately or not. However, if one looks into the practical aspect, it is found that for registration, details of constitution, name, bank account etc. is to be given by the assesses. This indicates that different business segments in the same premises may be separately registered only if the bank account is separate and separate accounting is being done for the said business as risks and returns are also required to be different. Moreover, practically assessees would avoid taking separate registration as taking separate registration will increase the adm
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GST won't lead to job losses at tax dept: Jaitley
GST
Dated:- 28-1-2017
New Delhi, Jan 27 (PTI) Ahead of the rollout of GST, Finance Minister Arun Jaitley today sought to address concerns of job loss from reduced work of tax officials, saying they should have no insecurity as enough work and opportunities will be available to them in the new indirect tax regime.
"I see no reason really for disquiet for the simple reason (that) opportunities which are available to people in service and the matter of policy and constitutional guarantee are all protected," he said at the Investiture Ceremony 2017 and International Customs Day 2017 organised by CBEC here.
Only the nature of activity will change because there will be on
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state (and) by Centre (will) all be integrated into one and therefore resulting in one assessment.
"Multiple systems on assessment which is there at present will evolve into a newer kind of system," he said.
He was responding to Central Board of Excise and Customs (CBEC) Chairman Najib Shah's remarks drawing his attention to "the rising disquiet in the cadre", saying there were human resource issues in the service.
Jaitley said the revenue to be collected is going to expand and there will be expansion of economic activity as well.
"Therefore even though you have two parallel machineries which could now be converging into similar kind of activities and shared responsibility, I think the future will stand witn
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Impact of GST on Automobile Dealers Industry
By: – Ravi Kumar Somani
Goods and Services Tax – GST
Dated:- 28-1-2017
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30% coupled with introduction of multiple cesses at revenues whims and fancies, most recent being infrastructure cess.
Apart from the high tax rates, industry has seen extensive litigations on VAT v/s Service Tax tussle, valuation issues in case of PDI charges, warranties, taxation on handling charges and many more. Thus, introduction of GST shall be a breather for this sec
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sale of vehicles. Further, in case of inter-state sale of the vehicles, they will be collecting and paying IGST (i.e. Integrated GST, which is nothing but the summation of CGST + SGST). Impact of GST on various aspects is as examined below:
1) Impact on Credits:
Currently, automobile dealers are not able to avail CENVAT credit on the following indirect taxes paid by them:
* CST Paid on purchase of vehicle, spares, consumables, accessories and assets;
* Excise Duty paid on purchase of vehicles, spares, consumables and accessories;
* NCCD, Auto Cess and Infrastructure Cess paid on purchase of vehicles;
* CVD paid on any imported Spares, accessories and consumables;
* SBC paid on input services;
* Reversal of proportionate CENVAT credit of service tax due to trading activity – Showroom Rent, Advertisement expenses etc.
In GST Regime, all the above duties/ taxes will get subsumed, therefore dealers should be able to avail the input tax credit of all its procurements of go
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ize Cars
7,50,000
18%
–
1,35,000
7,50,000
2,22,000
Luxury Cars
20,00,000
28%
2%
6,00,000
20,00,000
6,82,000
SUVs
16,00,000
28%
2%
4,80,000
16,00,000
5,93,000
* Since IGST and cesses shall be fully available as credit in the GST regime, therefore they will not form part of purchase cost and can be set-off from output GST payable on sale of the vehicle.
* Procurements are assumed to be in the course of Inter-state. GST rates have been assumed to be at such levels based on the various news reports and the reports issued by various committees formed by the Ministry of Finance.
As noted above, reduction in procurement cost is substantial as cascading of taxes was just adding to the cost in this sector.
3) Impact on the Sale Price:
Since, the procurement cost reduces in GST and if the benefit of the same is fully passed on to the consumer, then it leads to reduction in sale price of the vehicles as tabulated below:
Type of Vehicle
Sale Price Current Regime
Sa
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lers in the GST regime:
* Vehicle Transfers: transfer of vehicle/ spares to other premises will be liable for GST if the transfer is in the course of inter-state trade. Further, if there are separate dealerships of a dealer and separate GST registration number is obtained for each such dealership, then transfer of any goods/ services between such dealerships will also be liable for GST. This shall block the working capital as the taxes needs to be paid from own funds and collection of taxes will be at a later date only when such goods/ services are eventually sold.
Free Service Coupon vouchers: These coupons will be issued at the time of sale of the vehicle. As per the time of supply rule, GST on such coupons needs to be paid immediately on the date of issue of such vouchers. As per the policy of some manufacturers, the amounts in respect of such coupons will be redeemed to the dealers only once the customer brings the vehicle for repair to the workshop. Therefore, dealers would ha
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ankers/ Insurers: As details of the commission will be provided by bankers/ insurers at a later dates with constant changes involved. Therefore, generally dealers pay service tax on such receipts only upon receipt of commission;
* Income from manufacturer: Various commissions, incentives, reimbursements, warranty receipts etc. are received from manufacturer. Dealer dont pay taxes on these incomes on accrual basis as the same may or may not get approved by the manufacturer at a later date. Therefore, currently service tax is paid on receipt basis only when the amount is credited by the manufacturer and is reflected in the manufacturer's statement.
However, the luxury of paying taxes on receipt basis will not be accepted in the GST regime as everything will be system driven. Therefore, dealers will have to either get its system corrected with the bankers and manufacturers immediately to ensure smooth transition into the GST regime or else it would have to take the brunt of taxes on i
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cts various amounts from customers which are mere reimbursements and are paid back as it is to someone else. In other words, these amounts are collected merely as a pure agent such as:
* Insurance of the vehicle;
* Temporary/ Permanent Registration charges,
* High Security Number Plate Charges;
* Credit Card Swiping Charges etc.
Currently, Service Tax is not paid on such values, if collected as a pure agent. Ideally, these receipts must also be kept out of the GST net, or else it would create further valuation tussle in the GST regime.
Road Tax/ Life Tax: Currently, service tax or VAT is not paid on the Road Tax element. However, in the GST regime, value for the purpose of paying GST must also include Road Tax. Section 15 of the revised model law clearly states that no taxes shall be allowed as reduction from the value except CGST, SGST and IGST. Therefore, duplication of taxes to this extent shall continue, if not timely represented by the associations. Road tax rates are
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as 'Extended warranty' or 'Road side assistance', Service Tax is being paid only on commission element. However, in GST regime, such tax treatment may not be acceptable and dealers will have to pay GST initially on the entire value of the warranty receipts and the amounts charged by the manufacturer can later be taken as a credit. Adoption of this would require tremendous efforts.
6) Reduced current litigations:
Currently, the sector is facing disputes on the following areas:
* Valuation in Servicing of vehicle: Complexity in bifurcation of the material and labour component in the servicing of vehicle has led to multiple disputes as both the service tax and sale tax authorities demand taxes on a higher component.
* Handling Charges: Whether it is liable for VAT or Service Tax has led to demand of taxes from both the authorities and thereby disputes.
* Registration charges: Disputes were noted on applicability of service tax on various charges that are merely collected as pure
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ascertain the value of stock as on the appointed day and based on the availability of the invoice, credit can be availed. Further, even if proper excise invoice is not available with the dealer still a percentage as prescribed can be taken as credit to transit its excise credit in the GST regime.
* VAT/ SAD: Similarly, if a dealer is not availing the credit of VAT/SAD currently due to restriction in the state VAT law, then credit can be availed based on the ascertainment of stock as on appointed day. However, if the credit of VAT is being currently availed then the same needs to be properly reflected in the last VAT return to transfer such credits to the GST regime.
* Credit of CST: The same cannot be availed based on the stock availability as on the appointed day.
* Entry Tax: Credit of same can be availed subject to possession of appropriate documents for the same in states where such set off is permissible.
8) Impact due to Anti-Profiteering Measures:
Since a dealer will
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7 Returns in one financial year for each registration apart from ISD returns, if any. Further, returns filed will be matched online with the support of the IT infrastructure with the returns of the vendors/ customers. In case taxes are not paid by the vendors or if the returns are not filed by the vendors, then the credit of such taxes is denied to the customers. Therefore, timely payment of taxes, filing of returns needs to be ensured in the GST regime.
* Accounting: Coordination/ communication, flow of documents from various branches to accounts department should be before 10th of the subsequent month. Therefore, accounting function needs to be more robust, live and automatic. As far as possible, a dealer must map its accounting framework with other processes in an ERP environment and therefore finance & accounts department needs to be better structured to cope up with the needs of the GST regime.
* IT Infrastructure: In GST regime, businesses have to move from the manual environ
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Agreements re-alignment to suit the needs of GST of breaking up into the multiple supplies, composite supplies or missing the supplies;
* Business re-structuring/ Transaction re-structuring needs to be assessed and implemented;
* Understanding the impact on various business departments including procurement, sales & Marketing, finance & Accounts, IT, Admin & HR etc. and re-structuring the same to suit the needs of the GST;
* Optimizing the transitional credits, future credits.
* Assessing the capacity building to meet the needs of the GST;
* Strategizing the right pricing to create right balance between margins and volumes;
* Ensure original entries are verified, keep evidences of tax payments etc;
* Representing through various bodies/ associations on various adverse provisions of the GST law;
* Conducting in-house training programs for learning & development of staff to ensure smooth implementation into the new regime.
* CA Madhukar N Hiregange
* CA Ravi Kumar So
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Impact of GST on Inter State & Imports Transactions of Goods
By: – Ranjan Mehta
Goods and Services Tax – GST
Dated:- 28-1-2017
Prelude:-
Revised Model GST Law has been released by GST Council Secretariat in the month of November, 2016. Whatever be the fate of GST in this Budget session, this is certain that Govt. needs to bring it by 15th Nov, 2017, otherwise we will be living in an Indirect Tax Free World. In this context, it is very pertinent to understand, the impacts, GST is going to have on the various aspects of business. Since the incidence of GST, the ways in which businesses are done in India are going to change. Major re-hauling will be required, since currently taxes in a big away effect the Business Modelling in India. Every business process will needed to be relooked critically and re-engineered as per the foregoing provisions of GST Law to achieve the maximum benefit for business.
Present Regime: –
CST:- In Case of inter state sale of goods, presently C
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eplacement for VAT/Sales tax.
Anti dumping and anti subsidy duties have some very different conceopts in case imported products, which we are not focussing in this article.
Subsumation of duties under GST:-
Following are the duties are going to be subsumed in relation to IGST.
* CST
* Additional duty of customs/countervailing duty u/s 3(1) in lieu of Excise
* Special Additional Duty u/s 3(5) in lieu of VAT/Sales Tax
Anti-dumping, anti-subsidy duties and Basic Customs duties are not going to be subsumed under GST. Thus, we can understand that largely GST is going to subsume only those levies/duties which were part of or relevant to current levies of excise and VAT.
Provisions and Law:-
The provisions related to Interstate trade are contained in the IGST Law. IGST- The Integrated Goods and Service Tax Act contains the provisions related to assessment of Place of Supply of Goods. It is only the Place of Supply provisions which will determine that whether on a particular transa
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of supply may get changed from intra state to interstate. Thus, the taxation would also needed to be changed from CGST/SGST to IGST.
* In case of Import of Goods:- In case of import of goods the provision is as follows:-
“PROVIDED that the Integrated Goods and Services Tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 (52 of 1962), on a value as determined under the first mentioned Act.”
Thus in case of imports, levy of IGST arise when the goods are going to cross the custom barriers of India and where the custom duties are levied. The Custom duty is levied at time when good are cleared from the port/airport after showing proper documentation (Bill of entry, Invoice etc.)
This leads to a further question whether on High Sales and Transhipment GST will be levied?
This qu
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td in Baroda. Place of supply shall be Baroda.
3
Third Party Scenario
Where material was supplied to a party on the direction of a third person, place of supply shall be Principal Place of Business of that third person.
Ex 1 A Ltd in Ahmedabad directed B Ltd in New Delhi to deliver goods to C Ltd in Bangalore; Place of supply shall be Ahmedabad and B Ltd shall charge IGST.
Ex-2 A Ltd in Kanpur directed B Ltd in Dehradun to supply material to Branch of A Ltd in Haridwar. The Place of supply for B Ltd shall be Kanpur; even where goods physically has not crossed the boundary of Uttarakhand.
4
Where there is no movement
Where there is no movement involved; Place of supply shall be the location of goods at the time of delivery to recipient.
A Ltd a Mining unit in Raipur made available lumps of Marble to B Ltd. However since lumps were huge, B Ltd asked A Ltd for permission to break them into pieces do some preliminary work and then transfer from there to Ranchi; Place of supply sha
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provisions-
Provisions of sec 7(2) and 7(3) have created some deeming fiction into the law which have created a lot of confusion in the minds of practitioners and Law experts. I am trying to incorporate a few here for your knowledge.
Problem in sec 7(2)
Ex- A Ltd situated in Mumbai want to supply some material to B Ltd at Indore. A supplies material ex-factory usually, however since B Ltd could not arrange vehicle, they asked A Ltd to arrange for the vehicle for them for which they will reimburse.
In This case the Place of supply shall be Indore, being the movement terminated for delivery at Indore only. A Ltd would Charge IGST on the invoice.
Consider the same example and choose the answer if the vehicle was arranged by B Ltd.
The Place of supply in this case will be Mumbai, since the movement of goods terminated for delivery in Mumbai itself i.e. material delivered to the transporter on behalf of B Ltd. A Ltd will charge CGST and SGST in his invoice since this is an Intra stat
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x liability, hence finally transfer the credit to Haridwar.
The state tax authorities will, in this case cause objections; since as per destination based consumption tax principle they should get tax since the place of actual supply is Uttarakhand only. However through flow back of invoice from Kanpur HO to Haridwar, Uttarakhand is in anyway going to get their share in IGST. But still the state tax authorities will try to get taxes at first stage only, as it may be difficult to get it at later stage. Further, it will be difficult for the assessee also, to prove such flowback.
Ex-2 A Ltd in Kanpur supplied material to B Ltd in Nagpur on the direction of C Ltd in Kolkata;
The place of supply in this case shall be Kolkata and the goods shall be deemed to be supplied to Kolkata as per sec 7(3). However the actual delivery took place at Nagpur.
Here to move the complete cycle of credit; A Ltd will raise invoice to C Ltd and who in turn will raise invoice to B Ltd. All invoices will be I
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B Ltd in Jaipur to transport some material to its branch in Mumbai.
What would be the scenario?? I would leave it for readers' guess and contemplation, since if we go by 7(3) then Place of supply is Dubai and in such cases 7(3) does not apply and 8(2) will apply. However since material is not going out of India, again the applicability of 7(3) arise. Thus, it is a circular loop.
Conclude
The current provisions for place of supply of goods are quite confusing and will give birth to a lot of litigation issues post GST roll out. Govt should look out to simplify these provisions and provide more clarifications, So that Industry could prepare better.
Govt is set to roll out GST by 01st July, with many issues still to be catered. In order to bring a simplified GST the Govt should amend the provisions cohesively sitting with the Industry, since it is the Industry who is the biggest stakeholder apart from the consumers.
(CA Ranjan Mehta, Jaipur, +91-9672372075, ranjan.mehta@jainshrimal.i
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Transactional Value of Job Work under Model GST Law
Query (Issue) Started By: – Partha Sarkar Dated:- 27-1-2017 Last Reply Date:- 29-1-2017 Goods and Services Tax – GST
Got 2 Replies
GST
What would be transactional value under "Job Work" on which GST to be applicable.It itself the Principal value of the Items on which job work to be done or it would be the service/Job order value between customer or service provider.Means an Items to be reconditioned or repaired whose orig
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Demonetisation, GST to fetch more revenues to govt: Jaitley
GST
Dated:- 27-1-2017
Visakhapatnam, Jan 27 (PTI) Finance Minister Arun Jaitley on Friday put up a spirited defence of demonetisation, saying the drive "shook" the financial system for a short while, but will integrate the shadow economy with the formal in the long run and ensure better tax compliance.
He said most contentious issues regarding the Goods and Services Tax (GST) have been sorted out between the Centre and states and the new indirect tax regime is at the final stages of implementation.
"This (demonetisation), coupled with GST, in the days to come will ensure much larger revenues as far as states and the central government are concerned an
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ater number with the formal economy.
"The size of the formal economy is expanding, so are the transactions in the banking system and through the digital mode," he said.
As for the implementation of GST, the finance minister said new indirect tax regime will make India one single market, eliminate multiple assessments, check evasion and bring more revenues into the system.
"I am glad that almost all state governments have actively co-operated in making this a reality. Most of the contentious issues have been sorted out in the GST Council, a forum where you will see deliberative democracy in action.
Those are now at final stages of implementation," Jaitley said.
The government plans to implement GST, which will subsum
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FM may cut taxes, lack of indirect-tax data may make it tough
GST
Dated:- 27-1-2017
New Delhi, Jan 26 (PTI) Battling slump in demand after shock demonetisation, Finance Minister Arun Jaitley may look to spur consumption through lower taxes in next week's Budget, but he faces a peculiar situation as precise projections of indirect tax collection in 2017-18 are unavailable due to GST.
Finance Ministers usually weave around their welfare spending proposals based on projections of direct and indirect tax collections in the fiscal.
Projections of collection in direct taxes, made up of personal and corporate tax, would be available but with the rollout of Goods and Services Tax (GST) deferred till July 1, no reliable projectio
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RECOMMENDATIONS TO BE MADE BY GST COUNCIL
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 27-1-2017
Functions of GST Council
Article 279A (4) provides that GST council shall make recommendations to the Union and the States on-
* the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be submitted in the goods and services tax;
* the goods and services that may be subject to, or exempted from the goods and services tax;
* model Goods and Services Tax Laws, principal of levy, apportionment of Goods and Services Tax levied on applies in the course of inter-State trade or commerce under Article 269A and the principles that govern the place of supply;
* the threshold limit of turnover below which goods and services may be exempted from the goods and services tax;
* the rates including floor rates with bands of goods and services tax;
* special provisions with respect to the States of Arunachal Pradesh,
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n 2(24) – 'Common portal' means the common GST electronic portal approved by the Central Government and State Governments, on the recommendation of the Council, for the specified purpose, as may be notified under the Act;
* Section 2(37) – 'Deemed exports' as notified by the Central Government/State Government on the recommendations of the Council, refer to those transactions in which the goods supplied do not leave India and payment of such supplies is received either in India rupees or in convertible foreign exchange;
* Section 2(83) – 'regulations' means the regulations made by the Commissioner under any provision of the Act on the recommendation of the Council.
* Section 2(88) – 'rules' means the rules made by the Central Government under any provision of the Act on the recommendation of the Council.
Levy and collection of Central/State Goods and Service tax
* Section 8(1) – There shall be levied a tax collected the Central/State Goods and Services Tax (CGST/SGST) on all i
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t, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the person liable for paying the tax in relation to the supply of such services;
Composition Levy
* Section 9 – Notwithstanding anything to the contrary contained in this Act but subject to Section 8(3), on the recommendation of the Council, the proper officer of the Central or a State Government may, subject to such conditions and restrictions as may be prescribed, permit a registered taxable person, whose aggregate turnover in the preceding financial year did not exceed ₹ 50 lakh, to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not less than 2.5% in case of a manufacturer and 1% in any other case, of the turnover in a State during the year.
* Proviso (e) to Section9 – who is a manufacturer of such goods as may be notified on the recommendation of the Council;
Exemption
* Section 11 (1) – If the Central or a State Gover
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ernment in this behalf on the recommendation of the Council shall be determined in such manner as may be prescribed
Registration – exemption
* Section 23(13) – The Central or a State Government may, on the recommendation of the Council, by notification, specify the category 6 of persons who may be exempted from obtaining registration under this Act;
Tax invoice
* Section 25(1) – proviso – Provided that the Central/State Government may, on the recommendation of the Council, by notification, specify the categories of goods and/or supplies in respect of which the tax invoice shall be issued within such time as may be prescribed;
* Section 25(2) – proviso – Provided the Central/State Government may, on the recommendation of the Council, by notification, specify the categories of services in respect of which any other document issued in relation to the supply shall be deemed to be a tax invoice subject to such conditions and limitations as may be prescribed;
Continuous supply of go
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table to the tax or interest borne by such other class of applicants as the Central or a State Government may, on the recommendation of the Council, by notification, specify.
Refund in certain cases
* Section 49 – The Central/State Government may, on the recommendation of the Council, by notification, specify any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as may be specified in this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services received by them.
Interest on delayed refunds
* Section 50 – If any tax ordered to be refunded under Section 48 to any applicant is not refunded within 60 days from the date of receipt of application under s
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ts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property, under nay law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form (including electronic form) and manner, to such authority or agency as may be prescribed.
Power of Central (or State) Government to make rules
* Section 154(1) – The Central Government (or the State Government) may, on the recommendation of the Council, make rules, including rules conferring the power to issue such notifications with retrospective effect under those rules, to carry into effect the purposes of this Act.
Removal of difficulties
* Section 158(1) – If any difficulty arises in giving effect to any provision of the Act, the
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